CHAPTER XI General rule:
Negligence or mistake of counsel
AUTHORITY OF ATTORNEY
A. IN GENERAL
POWER TO BIND CLIENT,
GENERALLY
Lawyer must perform his duties to
his client within the scope of his
authority.
Extent of his authority is defined by
what is expected of him as
o Provided by Law and the
Rules of Court
o and/or by written authority
ATTORNEY AS AGENT OF CLIENT
granted by him as a client.
Former is a general and implied
authority, while latter is a special
authority granted by the client to
bind him on substantial matter.
Generally the professional
employment of an attorney confers
upon him the general authority to do
on behalf of his client such acts as
are necessary or incidental to
prosecution or management of the
suit entrusted to him or the
accomplishment of its purpose for
which is retained.
Authority embraces matters of
ordinary procedure only
binds the client.
:based on principle that any act
performed by counsel within the
scope of his general or implied
authority is regarded as act of his
client.
The employment by itself coners
upon the attorney, NO IMPLIED OR
APPARENT AUTHORITY TO BIND
CLIENTS
: SUBSTANTIAL MATTERS
Test: Validity of attorneys commitment
on substantial matters
o Written Agreement
o Special Authority
Relation of attorney and client is in
many aspects one of agency, and
the general rules of ordinary agency
apply to such relation.
: as the attorney is an agent of the
client, the latter is in accordance
with the rules of agency, bound by
the act or omission of its attorney
within the scope of his authority.
Therefore the extent of authority of
a lawyer when acting on behalf of
his client outside of court is
measured by the same test
COLLECTION OF CLAIMS
** Attorney retained by a creditor to
enforce a claim has the authority to
take ALL STEPS NECESSARY TO
COLLECT IT.
 Clients remedy in case he has
not received the amount due to
him
NOT AGAINST THE
OBLIGOR who has already
been discharged from
obligation
BUT AGAINST HIS
ATTORNEY who holds
money in trust for his benefit.
ATTORNEY WITHOUT
WITHOUT SPECIAL
AUTHORITY,
--- discharge clients claim for
less than the amount thereof or
for full amount in kind.
--- encash or endorse a check or
draft payable to his client or
deliver the proceeds of cliam to a
person other than his client.
ACCEPTANCE OF SERVICE
SUMMONS
Ordinarily, an attorney has no
power to receive or accept on
behalf of his client the service
of summons in his bear
professional capacity.
HOWEVER, he may be
regarded as an agent upon
whom service of summons
intended for his corporate
client be made and binding to
the latter
--- WHERE THERE ARE
CIRCUMSTANCES
SHOWING THAT HE HAS
BEEN CONFERRED OR IS
EXERCISING ADDITIONAL
POWER THAN WHAT IS
IMPLIED FROM THE
PROFESSIONAL
EMPLOYMENT.
*** there are some cases were such is
implied
o Foreign corporations sole
representative in Phil
o Attorney who acted as counsel
for a corporate tax payer in the
administrative stage of a tax
deficiency assessment
proceeding
o Section 11 of Rule 14 of the 1997
Rules of Civil Procedure
when defendant is a corporation,
partnership, or association
organized under the laws of the
Philippines with a juridical
personality, service of summons
may be made on the
Resident
Managing Partner
General Manager
Corporate Secretary,
Treasurer
In-house councel
*** specifying in-house counsel
implication that new rule excludes
outside or retained or settling lawyer
who may be served with summons on
behalf of corporation, and who, under
the law rule, was considered an agent
upon whom service of summons was
binding on his principal.
 DELEGATION OF AUTHORITY
Since relation of attorney and
client is one of utmost trust,
an attorney may not without
client, EXPRESS OR
IMPLIED
- delegate the confidence
and the authority that goes
with it to another lawyer.
HOWEVER, client may ratify
an unauthorized delegation or
the circumstances of the
professional employment
: may furnish sufficient basis
to assign the retainer
including authority implied
therefrom.
DELAGATION OF LEGAL
WORK
Lawyer MAY NOT delegate in
absence of his clients
consent: confidence reposed
in him by client
--- as distinguished to work
involved therein.
Lawyer has the implied power
to delegate to his associate or
assistant attorney under his
supervision and responsibility
---Part or the whole of the
legal work required to be
performed in the prosecution
or defense of clients cause.
In absence of an express
agreement with the client to
the contrary, he may
authorize another lawyer on
his behalf to appear in court,
and the lawyer so acting is
presumed to be empowered
to act in that capacity
That fact alone does not
make latter counsel of
attorneys client nor
necessarily create A-C
relationship between them.
** CLIENT MAY NOT
THEREFORE BE HELD
LIABLE TO PAY FEES OF
ASSOCIATE COUNSEL HIRED
BY CLIENTS LAWYER IN
ABSENCE OF AGREEMENT
TO THAT EFFECT
LAWYER MAY NOT HOWEVER
DELEGATE TO A LAYMAN ANY
WORK WHICH INVOLVES
o STUDY OF LAW
o OR ITS APPLICATION.
B. AUTHORITY TO APPEAR
GENERALLY
Attorney may not without being
retained or authorized by court,
represent another in court.
Authority to appear
commences only the time he is
retained by client or latters
agent.
Continues until termination of
litigation UNLESS sooner
revoked or withdrawn by client.
***** *****************************
 In cases where a judge is Atty for a plaintiff initially appears in court
when files a complaint/petition on behalf of
made a respondent in
his client.
petition challenging judges
ruling: Thereafter, an attorney for either plaintiff or
defendant may enter his appearance in any
COUNSEL FOR PRIVATE form by filing a pleading or motion or
RESPONDENT has attending a hearing in court
authority, thus he is obliged
to appear for judge
concerned. >> Appearance as counsel is a
VOLUNTARY submission to the
No written authority from courts jurisdiction by a legal
client is necessary to advocate or lawyer professionally
enable a lawyer to engaged to represent or plead the
represent him in court. cause of another.
His appearance in
whatever form is an
assertion that he has Orderly conduct of proceedings
been duly authorized to however require a counsel
prosecute or defend the
File in court pleading with
clients cause.
signature of client conforming
HOWEVER thereto

--an administrative agency a. Asking court to enter his

authorized by law may require that name as counsel for party
a lawyer appearing for a client in a b. Requesting that copies of
particular case before it, submit a orders, processes,
written power of attorney from his decision and pleadings be
client. henceforth sent to him at
address clearly indicated
with copy of his
APPEARANCE appearance furnished
with adverse party.
Appearance means coming into court as a
party either as a plaintiff or defendant and *** without such formal
asking relief therefrom.
appearance counsel is
 generally not entitled to PRESUMPTION OF AUTHORITY
notice. Attorney is presumed nga to
properly authorize to represent ANY
GENERAL AND SPECIAL CAUSE in which he appears in ALL
APPEARANCE stages of the litigation
o NO WRITTEN AUTHORITY
General Appearance IS REQUIRED TO
The act by which a defendant completely AUTHORIZE HIM TO
consents to the jurisdiction of the court by APPEAR
appearing before it either in person or through >> appearance is presumed to be
an authorized representative thereby waiving with previous knowledge and
any jurisdictional defects that might be raised
consent of litigant until contrary is
except for that of the competency of the court.1
shown.
Special Appearance Mere denial in absence of
The act of presenting oneself in a court and
compelling reason is
thereby submitting to the court's jurisdiction, but insufficient to overcome
only for a specific purpose and not for all the presumption.
purposes for which a lawsuit is brought.2 Fact that 2nd atty appeared on
Section 20 of Rule 14 , 1997 Rules of behalf of litigant does not
Procedure: amended rule authorize presumption that 1st
atty has been withdrawn, it
inclusion in motion to disiss on the merely means :
ground aside from lack of jurisdiction an additional counsel
over the person of the defendant shall
not be deemed voluntary appearance

Amendment removes distinction between Attorney who appears de parte in

general and special appearance, in the a case before lower court is
sense that defendant may file motion to presumed to continue to
dismiss not only on ground of lack of represent client on appeal
jurisdiction over his person. BUT ALSO on
EXCEPT
some other grounds without waiving the
jurisdiction of court over his person --- attorney entered
representation merely in nature
and character of special
appearance and only for a
specific purpose.
1
http://legal-
dictionary.thefreedictionary.com/General+Appearan Presumption of authority in favor
ce
of attorney to represent any
2
http://legal- cause in which he appears
dictionary.thefreedictionary.com/Special+Appearanc
e
 EXIST ONLY AS TO
MATTERS OF ORINARY
JUDICIAL PROCEDURE.
NOT as to substantial matters
affecting cause of litigation,
with reference to which the
attorney needs a special
power to bind the client.
Lawyer has no implied
authority to represent party in
a proceeding incidental to
main litigation in which he
appears as litigant
PRESUMPTION IS
DISPUTABLE
--presumption that an
attorney is duly notarized to
manage a litigant is
disputable and may be
overcome by a clear
evidence to the contrary.
>>Petition questioning the
authority must be
seasonably presented.
It may not be entered
generally on appeal or after
rendition of judgment
DISCLOSURE OF AUTHORITY
Presiding judge may, on
motion of either party and on
reasonable ground therefor
being shown, require him who
assumes right to appear in te
case to produce or prove his
authority and to disclose
whenever pertinent to any
issue, the name of person
who employed him.
COURT MAY NOT
DISREGARD attys authority
on faith of client s word,
especially when no
substantial rights of a third
person is prejudiced.
Attys failure to present such authority
from client, when his authority to
appear is challenged gives rise to the
inference that he as no such authority.
EFFECT OF UNAUTHORIZED
APPEARANCE
Party: Not bound by attys
appearance in case nor by
judgment therein
Adverse party: who has been
forced to litigate as defendant
by the unauthorized acion on
part of attorney for plaintiff
may , on that ground move for
dismissal of complaint.
IF UNAUTHORIZED
APPEARANCE IS WILLFUL
atty may be cited for contempt as
officer of court who has
misbehaved
-disciplined for professional
misconduct.
Prudence therefore dictates that
an attorney should, for his
professional protection enter into
a written retainer or secure
written authority from client.
 RATIFICATION OF
UNAUTHORIZED APPEARANCE
May be ratified by the party
either expressly or impliedly
Ratification retroacts to date of
attorneys first appearance and
validates the action taken by him.
It REMOVES taint of impropriety in
attorneys conduct as officer of
court.
EXPRESS RATIFICATION
Categorical assertion by the client that
he has authorized he attorney or he is
conforming his authority to represent
him in a case.
IMPLIED RATIFICATION
Party with knowledge of fact that
attorney has been representing him,
accepts benefit of representation or
fails to promptly repudiate the assumed
authority.
>> PRINCIPLE OF IMPLIED
RATIFICATION BY SILENCE
a.) Party represented by attorney is
of age or competent or if he has
duly appointed guardian or
representative
b.) Party or his guardian as the case
may be is aware of the attorneys
representation
c.) Fails to promptly repudiate the
assumed authority.
** absence of one renders
implied ratif. Inoperative
C. CONDUCT OF LITIGATION
GENERALLY
Cause of action, the claim or
demand sued upon and
subject matter of litgation are
within the exclusive control of
client
Attorney may not impair,
compromise, surrender, settle
or destroy without clients
consent.
GENERALLY:
Client may waive, surrender,
dismiss or compromise any of his
rights involved in a litigation in
favor of te other party even
without or against the consent of
attorney
LAWYERS AUTHORITY
PROCEDURAL YES
-whether to appeal,
lawyer has final say
before court
SUBSTANTIAL NO
-Client has final say
-lawyers only duty is to
give advice
>> Lawyer can bind his client on
substantial manner only with
clients express or implied
consent.
: limitations to the power of an
attorney are particularly designed
to safeguard the clients interest
against malicious or improvident
actions of his counsel, who in the
 complexity of judicial litigations
and by high technical nature of
his work, and primarily
confidential information between
him and his principal, handles
clients cause without clients
intervention or knowledge.
DETERMINATION OF
PROCEDURAL QUESTIONS
Lawyer who has been
retained to prosecute or
defend an action has the
implied authority to determine
what procedural steps to take
which, in his judgment will
best serve the interest of his
client.
Whatever decision an
attorney may make on any of
those procedural questions
--- even if it adversely affects
clients cause, will generally
bind the client and the latter
may not be heart to complaint
that the litigation might have
been different had counsel
proceeded differently.
MAKING ADMISSIONS
Authority of an attorney to
manage clients cause
includes the power to make
admissions of facts for
purpose of litigation.
He does not need special
authority from cient to admit truth
of certain facts
Implied admission by counsel
may take form of failure to deny
specifically the material
allegations of the adverse
party/transverse under oath the
due execution and authenticity of
actionable documents/ claims of
usury/submission of case for
decision upon the verified
complaint and verified answer
without introduction of evidence
General rule is that request for
admission should be served upon
the party and not upon his
counsel.
Client may however
engage the services of
counsel to respond to
request for admission on
the clients behalf and the
response is VALID AND
BINDING.
--- except where lawyer
oversteps his authority
which can only be
impugned by client not by
adverse party.
Generally authority of attorney to
make admission is limited to
action in which he is retained;
consequently, admissions made
by him, on behalf of a client in
one case are not binding upon
the same client in another suit.
EXCEPT
 where atty, has been expressly
authorized to make admission
or subsequent litigation is reated
to present controversy
!!!! Authority of attorney to bind client to
admission of facts made by him is
MOREOVER LIMITED TO MATTERS
OF JUDICIAL PROCEDURE.
Admission which operates
as waiver is beyond scope
of attys implied authority.
Lawyer without special
power cannot admit that
client suffered no damage.
** in criminal proceeding
--- > Counsel of accused may not on
arraignment enter plea of guilty on
accuseds behalf even if he is so
authorized
!!!! Counsel de oficio may, however if
otherwise convinced, RECOMMEND
THE AFFIRMANCE BY APPELLATE
COURT OF TRIAL COURTS
VERDICT.
ENTERING INTO STIPULATIONS
-lawyer has general or implied
authority to stipulate upon facts
involved in litigation without prior
knowledge or consent of his
client.
* his signature in a stipulation
= admission of the truth of all
facts therein stated.
Stipulation is binding to client
UNLESS he raises questions
seasonably.
= for party may not be allowed to
gainsay his own act or deny right
which he has previously
recognized.
PARTY MAY BE RELIEVED OF
LEGAL EFFECTS OF
STIPULATION BY HIS
ATTORNEY ONLY WHEN:
1. Hes allowed to withdraw
therefrom with consent of
other party
2. Court, upon showing of
palpable mistake permits
him to withdraw from
stipulaition.
3. Lawyer agreed is that a
witness, if presented in
court, would testify as
stated by adverse
attorney.
If what lawyer has stipulated is
not related to enforcement of
remedy but to cause of action
or subject matter of litigation
-- client not bound thereby in
absence of precedent special
authority or subsequent
ratification on part of client
AGREEMENT AS TO WHAT
WITNESS WOULD TESTIFY
Truth of what witness if presented
would testify
Generally binding upon client
 Stated by counsel for the adverse
party
Not binding and is found upon by
court as it deprives court of
benefit of reflection upon the
intelligence and veracity of the
witness which can arise only from
process of examination and
cross-examination in court.
Lawyer may only stipulate as to
facts not as to the manner the
facts are to be offered.
COMPROMISE OF CAUSE OF
ACTION
Compromise
: contract whereby the parties, by
making reciprocal concessions,
avoid litigation or put an end to
one already commenced.
ELEMENTS NECESSARY FOR
VALID COMPROMISE
1. Reality of claim
2. Bona fides of the compromise
ATTY HAS NO AUTHORITY TO
COMPROMISE HIS CLIENTS CAUSE
WITHOUT CLIENTS CONSENT.
He may not unless expressly
authorized even though he
honestly believes that a
settlement will best serve the
clients interest.
EITHER
Special Authority
Subsequent ratification
: essential for validity of
compromise effected by attorney
** if not a true compromise as term is
understood in law, he requires no
special power of attorney
Lawyer must be armed with
special authority to compromise
an action or claim not only when
signing a settlement on behalf of
his client, BUT ALSO when
appearing in the absence of
his client, in pre-trial proceeding
Special authorityneed not
to be in writing although it
is not only wise but
prudent as well to secure
written authority.
Approval of court of the
compromise is not
essential to its validity
except that which is
entered into in class suit or
executed on behalf of
minor, an incompetent, an
absentee, or decedents
estate
approval thereof
necessary to be binding
 EFFECT OF WANT OF
SPECIAL AUTHORITY
It does not bind client
Settlement is merely
unenforceable and not null
and void ab initio.
Capable of being ratified by
client
Judgment rendered may be
set aside or reopened.
Party seeking to reopen with view
to renewal of litigation must show
that he acted with diligence.
Client must show that he would
stand to gain something by the
reopening of the case.
RATIFICATION OF
UNAUTHORIZED
COMRPOMISE
Client may ratify an unauthorized
compromise either expressly or
tactly.
Ratification cleanses the
compromise agreement of all its
defects from the moment it was
constituted, and the client who
becomes bound thereby cannot
disown it.
TACIT/IMPLIED ratification may
take place in many forms
a. Silence
b. Acquiescence
c. Acts showing approval or
adoption of the
compromise
d. Acceptance or retention of
benefits flowing therefrom
CONFESSION OF JUDGMENT
Stands on the same footing
as compromise agreement
LAWYER CANNOT
CONFESS JUDGMENT
AGAINST HIS CLIENT
EXCEPT WITH
KNOWLEDGE AND AT THE
INSTANCE OF CLIENT
--even though he honestly
believes that what he did best
serves the clients interest.
BUT while client may not be
bound by judgment confessed by
his attorney without special
authority,
he may generally be bound by an
adverse decision rendered as
result of attorneys inaction or
negligence
: adverse judgment is mere
consequence of omission on
procedural matter in regard to
which an attorney has implied
authority to bind his client
DISMISSAL OF ACTION OR
WITHDRAWAL OF APPEAL
No authority to dismiss his
clients case with prejudice
even if he does not believe
that client is entitled to prevail
in action
Lawyer requires special
authority before he can
dismiss clients cause with
prejudice.
 DIFFERENT FROM
Dismissal for failure to appear
at hearing, prosecute the
action, or comply with
corporate order , within
general power of attorney
o Atty however has implied
authority to dismiss
clients case without
prejudice, step not being a
legal obstacle to its
refilling
LAWYER HAS NO IMPLIED
AUTHORITY TO WAIVE HIS
CLIENTS RIGHT TO APPEAL
NOR TO WITHDRW A PENDING
APPEAL.
---- while he may bring about
such result by negligence and
mistake in procedure which will
bind his client
HE CANNOT WITHOUT
SPECIAL POWER OF
AUTHORITY EXPRESSLY
RENOUNCE CLIENTS RIGHT
TO APPEAL.
*** *** *** *** ****
But client may ratify or be
estopped to disvow action
taken by counsel,
as when client fails
nothwithstanding opportunity
given to him, to reject the
withdrawal of an appeal sought
by his lawyers
CLIENTS RIGHT TO DISMISS
OR COMPROMISE ACTION
Client as exclusive control of
the cause of action , the claim
or demand sued upon and
the subject matter of litigation
he has, generally speaking
--- right to dismiss, settle,
waive his cause either on
trial/appellate court.
LIMITATIONS ON CLIENTS
RIGHTS
--clients right to dismiss or settle
his action is not absolute
HE MAY NOT DEFEAT AN
ATTORNEYS RIGHT TO JUST
COMPENSATION FOR HIS
SERVICES
Either in full amount or based on
quantum meruit
Attorney may moreover elect to
have his right to fees and the
amount thereof determined in the
same proceeding without the
necessity of filing an independent
civil action for that purpose.
Client cannot exercise right to
dismiss or settle his cause if
CONTRARY TO
Law
Public policy
Public order
Morals
Good customs
Prejudicial to third persons with
rights recognized by law
 While he may settle civil liability alteration or modification even
arising from an offense, the though the alteration appears to
settlemet shall not extinguish the be beneficial to his client
public action for the imposition of HE CAN ONLY ASSENT TO
legal penalty or preclude THE CORRECTIO OF
prosecutin of the offense for CLERICAL ERROR IN
punishment of the offender. JUDGMENT OR DECREE

?> interest will have to be considered.

.

AUTHORITY AFTER
JUDGMENT
Power of an attorney after
rendition of judgment is more
restricted.
In absence of greater authority
expressly conferred , he has only
power to take such steps or
proceedings as are necessary to
make the judgment fully effective
or to sustain or enforce it or to
relieve his client from its effects if
it is adverse.
A COUNSEL OF RECORD IN
THE INFERIOR OR TRIAL
COURT, is presumed to continue
representing his client in the
appellate court with the power to
bind his client on any procedural
matters affecting the appeal.
*** after judgment becomes final,
an attorney who has been
employed merely for the purpose
of litigation has no authority to
alter or modify the judgment in a
material particular or to act or
appear in proceeding which has
been brought to obtain such